November 2, 2023
The overall tax-to-GDP ratio, meaning the sum of taxes and net social contributions as a percentage of gross domestic product (GDP), stood at 41.2% in the EU in 2022, a decrease compared with 2021 (41.5%). In the euro area, tax revenue increased in line with nominal GDP, meaning that the tax-to-GDP ratio in 2022 remained stable at 41.9%.
In absolute terms, in 2022, revenue from taxes and social contributions increased by €480 billion in the EU compared with 2021, to stand at €6 549 billion.
Highest tax-to-GDP ratio in France, Belgium and Austria
The tax-to-GDP ratio varied significantly between EU countries in 2022, with the highest shares of taxes and social contributions as a percentage of GDP being recorded in France (48.0%), Belgium (45.6%) and Austria (43.6%).
At the opposite end of the scale, Ireland (21.7%), Romania (27.5%) and Malta (29.6%) registered the lowest ratios.
Largest increase of tax-to-GDP ratio in Cyprus, largest decrease in Denmark
In 2022, compared with 2021, the tax-to-GDP ratio increased in twelve EU countries, with the largest increases being observed in Cyprus (from 34.8% in 2021 to 36.5% in 2022) and Hungary (33.9% in 2021 and 35.1% in 2022).
In contrast, decreases were recorded in fifteen EU countries, notably in Denmark (from 48.3% in 2021 to 42.5% in 2022) and Poland (from 37.6% to 35.3%).
Source: Eurostat
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